Likemystoppie?

So. Here we are, November 2008. Having fun yet?

I'm not. I'll tell you why. I have cilents. Lot's of clients. Lot's of clients who WANT to buy a car from me.

So what's the probelm you ask?


The problem is this: Since sales are slow for all makes and models on the NEW car front- and incentives are coming to an end- Dealerships are NOW stuck- with their trade-ins.


The used car market is about as full as one could get. Saturated. Over-full. Obese.


Let me give you some examples:

I have 2 clients who want out of their 2007 RS4's. Both are very clean cars, both are great colors combo's and both are just great cars.


One, has about 10k more miles on it then the other; but all in all- great cars. Two months ago, the car with lower miles- was worth in the lower $50k range.


TODAY: I can't get more then high $30's to low $40's for the cars.

I have a client who has a 2008 BMW 335 Cabriolet w/ 6000 miles on it. The car listed for about $53k new- very low options. But super clean car.


I would GUESS that cars worth mid $40's all day long. Right? Sounds reasonable, right? Mabye a $1k here or there???






WRONG!

I can't get more then mid $30's on that car. WORSE. I've had dealerships from Ohio to Virginia tell me they DON'T WANT THE CAR!!

Here's another example.

2006 MB CLS55 AMG. with a original list of just over $103k.

Sept. 2008 the car was worth $55k with about 28k on it.

Nov. 2008 the car is worth just $39k trade in.

what. the. ****.


So what's happening? The market is coming to a grinding halt. Despite the incentives, or in my case- my aggressive pricing- there's no more room to go.


So, apparently it's true. "What goes around, comes around."


I figured I'd just give you guys/girls a heads up so if you're out shopping with a trade in, particularly the NON Porsche type- you're about to get a punch right on the chin.


If however, you're just doing a 'one' car transaction; by all means. Enjoy it while you can. And if you're looking for an awesome used car; you're about to enjoy some serious pricing. -But that will come further down the road. I'm sure dealerships will try and steal what trades they can, and apply the difference in revenue from that if they RETAIL it and throw it towards cars they need to move.

No one is going to be making $ like they used to...but we all knew that.


Okay, carry on with your regular programming.

fjpdds

Thats quite a tale of woe. Jaw dropping examples. I'm looking at trading a Boxster on a 911. Thanks for preparing me.

Likemystoppie?

Porsche's are BETTER then most; but considering that mid-engines sales are the pits right now; you're up against it.

But let me know if you need help. I can always try, right? Doesn't cost anyone anything to try......

Chris from Cali

I'm just paying my **** off and then we'll talk. When I'm rid of $1500/mo in other bills, I'll sell the Cayman privately and buy that C2S from you. Until then..

pred8or

I would think that leased cars would act like domino's in this environment as they come off there lease's? They certainly won't be purchased by the lessee? Wish I waited till now to buy my car but oh well I wouldnt have had it the last 5-6 months and 12k miles. Glad I am just gonna keep it and drive the crap out of it!

KeninBlaine

Thanks for sharing your observations Likemystoppie. I've noticed these trends in monitoring cars on the 6speed classifieds and in Autotrader. I also experienced it in trying to sell my C55, which I finally did last month after caving in more than I wanted to. There are just no car buyers (or house buyers) out there right now. It is going to be a tough time for a while with everyone just holding back on all non-essential purchases, especially with expectations of further price reductions. A year ago, you could stop and have a hot dog at Costco and watch a steady parade of big flat-screen TVs being wheeled out in shopping carts. Not these days.

nyca

And most people think these problems are nearing their end - in reality it's just the beginning. We are in the deflationary phase now.

Targa Tim

Sad, but I don't feel bad for them at all.

Most people lost way more money in their stocks and other assets. The money lost in car trades is nothing in comparison.

Agree with pred8or, drive the crap out of them!

MLindgren

I suspect there are many who are living way beyond their means and have been caught with pants down causing them to bail on current high buck cars.

Not certain but that would definitely be my guess. I tell my wife each day the 911 is the best place our money could have set the year+. If it wasn't in the car I'd be down 40%.

Chris from Cali

I tried but she wouldn't go for it...

Soulteacher

I like it! I've been trying to justify to myself keeping both 997 after I pick up the new one in Germany... this development will help the Yespleasewolfie to convince the Nowaywolfie that a trade-in wouldn't be the best move right now.

Of course it totally sucks for those who rely on the trade-in, I agree. But we all knew from the start that buying a car at that end of the scale would mean sinking a lot of discretionary income. Now we can add another 10-15K to the drop.

Winter season, of course, doesn't make it any easier. Things should improve again in the spring (not back to normal, of course, but still).

Jetpilot

FWIW

I just traded my 04' C2 with 46K miles on it in yesterday for $34K and bought an 05' 997 C2 w/ 27,000 (artic silver) miles on it with a brand spankin new CPO warranty, bose, etc... for $49K.

I think i got out ok on the trade and know I did well on the 997. The stealers are in trouble right now, If you have the money, you can get a good deal on a preowned or new pcar.

The economy does suck, but hang in there if you can fellas and ladies....it will come back.

Le Chef

Apparently we will begin to see the first shift back towards normality in April 09. The recovery will finally feel like we're close to being back to normal around February 10. In the meantime hang on to what you've got and enjoy it. Let the dealers bleed for scalping us with "market adjustment pricing" and let them figure out how they're going to pay for their health care insurance. Then come back and squeeze their n*ts on pricing on pricing. What goes around comes around.

plz

Chris, just for clarification, in your original post are the numbers you provide for each example the retail prices at your dealership, trade in values at your dealership or some thing else?

_Nathan

When I bought my 997S six months ago I set myself an upper limit of $100K. Since then the value of my investments have dropped by about 3 times that amount. I wish now that I had bought a Turbo (or a Lambo!).